Bankruptcy and your job

Fear is one of the biggest reasons why people don't pursue bankruptcy. Fear of being found out.So what does happen to your job?

After being made bankrupt it is very unlikely that the Official Receiver will write to an employer advising them of the situation. The only notification that anything has changed is when the tax office advise your employer that your tax code is to change to NT ( No Tax ) for the duration of the current financial year.

After your tax code changes to NT you will be paid the amount that was previously deducted at source and this is in turn collected from you by agents for the official receiver ( currently a company called Moon Beever).

The change in tax code is only for the current financial year and in practice a bankruptcy petition in February to March would not allow sufficient time for this to be changed. Therefore your employer is unlikely to be made aware.